U.S. Housing Starts Dropped 2.5% in December

Housing market loses momentum in the final month of the year

WASHINGTON—Home-building in the U.S. slipped unexpectedly in December, with declines in both single-family and apartment-building construction despite unusually mild winter weather.

Housing starts, which reflect groundbreakings on single-family homes and apartments, fell 2.5% from a month earlier to a seasonally adjusted annual rate of 1.15 million, the Commerce Department said Wednesday. Building permits, an indication of future...